US Crude Oil Tops US$100 Again As Hormuz Closure Keeps Supply Fears Elevated

ISTANBUL, April 28 (Bernama-Anadolu) -- US benchmark West Texas Intermediate (WTI) crude oil futures jumped more than 3.8 per cent on Tuesday to again hit US$100 per barrel as the continued closure of the Strait of Hormuz kept supply concerns at the center of global energy markets.

WTI extended gains for a seventh consecutive session, reaching its highest level since early April, as traders assessed the risk of prolonged disruptions in one of the world’s most critical energy corridors.

Meanwhile, international benchmark Brent crude oil futures also jumped 2.8 per cnet to reach US$111.3 per barrel as of 1410GMT, according to Anadolu Ajansi.

The latest rally came despite the United Arab Emirates’ unexpected withdrawal from OPEC, a move that could normally ease market concerns over supply discipline.

However, analysts said any potential increase in output would do little to calm markets as long as crude flows through the Strait of Hormuz remain severely restricted.

Markets are also focused on US President Donald Trump’s response to Iran’s latest proposal aimed at ending the conflict and reopening the strait. However, reports suggest Washington remains dissatisfied with Tehran’s offer, as Iran’s nuclear programme continues to be a major sticking point in negotiations.

Although a ceasefire has largely held since early April, restrictions imposed by both Iran and the US have reduced traffic through the strait to near zero, intensifying fears of a deeper supply squeeze.

Hormuz normally carries around 20 per cent of global energy flows, making any disruption a major risk for crude, liquefied natural gas and refined product markets.

The conflict, now in its ninth week, has pushed oil prices sharply higher, tightened global supply conditions, and raised concerns that elevated energy costs could feed through to inflation and demand in major consuming economies.

-- BERNAMA-ANADOLU